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Brookfield Renewable Partners L.P. (BEP.UN $35.16)
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Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC $47.31)
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Brookfield Corporation Class A Limited Voting Shares (BN $91.16)
Q: Hello team,
Can you help me understand please whether i should put new monies in TFSA towards bep.un or bepc ? On yahoo, i see bep.un has dividend of 5.87 percent but 1 year return of minus 2 percent where as bepc has dividend of 4.7 percent but one year return of 14 percent. From income and growth perspective, bepc seems to be better bet.. If this is the case, are investors losing out by investing in bep.un? i have huge loss in my rrsp from bep.un so would like to know where to put new monies as it seems brookfield would benefit from the energy transition. Alternatively, am i better off simply putting all my monies in BN and forget the spinoffs.. please explain and thank you ..
Can you help me understand please whether i should put new monies in TFSA towards bep.un or bepc ? On yahoo, i see bep.un has dividend of 5.87 percent but 1 year return of minus 2 percent where as bepc has dividend of 4.7 percent but one year return of 14 percent. From income and growth perspective, bepc seems to be better bet.. If this is the case, are investors losing out by investing in bep.un? i have huge loss in my rrsp from bep.un so would like to know where to put new monies as it seems brookfield would benefit from the energy transition. Alternatively, am i better off simply putting all my monies in BN and forget the spinoffs.. please explain and thank you ..
5i Research Answer:
We would consider BN more of a 'growth focused' company as opposed to BEPC/BEP.UN which are income with a side of growth. We would thus be quite comfortable with BN instead in a growth-focused account. In terms of BEPC vs BEP.UN, BEPC typically gets a premium because it gets the full dividend tax credit. For a registered account, this credit has no use, and generally speaking we would go for the higher yield of BEP.UN in a registered account.